Oil price reaches its lowest level in four years
Crude oil prices have fallen below $64 per barrel, driven by escalating US-China trade tensions that raise recession fears. On Monday, oil prices dropped more than 3%, compounding losses from the previous week as concerns about a possible recession...
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Crude oil prices have fallen below $64 per barrel, driven by escalating US-China trade tensions that raise recession fears.
On Monday, oil prices dropped more than 3%, compounding losses from the previous week as concerns about a possible recession emerged due to increasing trade conflicts between the US and China. According to trading data, global benchmark Brent crude futures for June 2025 delivery fell below $64 per barrel on the London Intercontinental Exchange for the first time in four years.
Brent crude decreased by $2.28 to $63.30 a barrel, while US West Texas Intermediate dropped $2.20 to $59.79, with both reaching their lowest levels since April 2021.
The downturn began late Wednesday after US President Donald Trump imposed sweeping tariffs on all US trading partners, with China—being the world’s largest oil importer—particularly affected. Although energy was technically exempt, market reactions were swift.
On Friday, oil prices plummeted 7% after China retaliated with 34% import tariffs on American goods, escalating the trade war and amplifying recession fears among investors. Brent crude ended the week down 10.9%, while WTI fell 10.6%, marking one of the steepest weekly declines in recent times.
“It’s hard to see a floor for crude unless the panic in the markets subsides and it’s hard to see that happening unless Trump says something to arrest snowballing fears over a global trade war and recession,” Vandana Hari, founder of oil market analysis company Vanda Insights, told Reuters.
The decline in oil prices coincides with widespread market volatility as investors respond to increasing economic uncertainties.
While oil, gas, and refined product imports were not affected by Trump’s tariffs, analysts have observed that the broader policy changes could trigger inflation, stall economic growth, and escalate trade tensions—factors that may further depress oil prices.
This persistent slide in oil prices follows an announcement from OPEC on April 3, indicating that eight OPEC+ member nations will accelerate production increases in May, boosting output by 411,000 barrels per day, significantly higher than the initially planned 135,000 bpd.
Experts interviewed by TASS suggested that this decision reflects the current balance in the oil market, noting that despite the price drop, conditions are stable enough for OPEC to enhance previously curtailed production.
Camille Lefevre for TROIB News
On Monday, oil prices dropped more than 3%, compounding losses from the previous week as concerns about a possible recession emerged due to increasing trade conflicts between the US and China. According to trading data, global benchmark Brent crude futures for June 2025 delivery fell below $64 per barrel on the London Intercontinental Exchange for the first time in four years.
Brent crude decreased by $2.28 to $63.30 a barrel, while US West Texas Intermediate dropped $2.20 to $59.79, with both reaching their lowest levels since April 2021.
The downturn began late Wednesday after US President Donald Trump imposed sweeping tariffs on all US trading partners, with China—being the world’s largest oil importer—particularly affected. Although energy was technically exempt, market reactions were swift.
On Friday, oil prices plummeted 7% after China retaliated with 34% import tariffs on American goods, escalating the trade war and amplifying recession fears among investors. Brent crude ended the week down 10.9%, while WTI fell 10.6%, marking one of the steepest weekly declines in recent times.
“It’s hard to see a floor for crude unless the panic in the markets subsides and it’s hard to see that happening unless Trump says something to arrest snowballing fears over a global trade war and recession,” Vandana Hari, founder of oil market analysis company Vanda Insights, told Reuters.
The decline in oil prices coincides with widespread market volatility as investors respond to increasing economic uncertainties.
While oil, gas, and refined product imports were not affected by Trump’s tariffs, analysts have observed that the broader policy changes could trigger inflation, stall economic growth, and escalate trade tensions—factors that may further depress oil prices.
This persistent slide in oil prices follows an announcement from OPEC on April 3, indicating that eight OPEC+ member nations will accelerate production increases in May, boosting output by 411,000 barrels per day, significantly higher than the initially planned 135,000 bpd.
Experts interviewed by TASS suggested that this decision reflects the current balance in the oil market, noting that despite the price drop, conditions are stable enough for OPEC to enhance previously curtailed production.
Camille Lefevre for TROIB News
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